Hispanics and the Economy

If The U.S. Latino Market Was its own Country, it Would be the 8th Largest Economy in the World.

According to the 2020 LDC U.S. Latino GDP Report, the size of the U.S. Latino market measured by GDP was $2.6 Trillion in 2018, up almost 9% from $2.3 Trillion in 2017.

If the U.S. Latino market was its own country, it would be the 8th largest economy in the world and the largest Latino market in the world, larger than Brazil and more than twice the size of Mexico.

When compared to the non-Latino U.S. cohort, the Latino cohort grew 4.5 times faster in terms of GDP, implying most of the U.S. growth came from the Latino population. Put another way, had it not been for strong growth in the U.S. Latino market, the U.S. economy would have likely contracted between 2017 and 2018.

Source: Forbes.com September 27, 2020 – The $2.6 Trillion U.S. Latino Market: The Largest and Fastest Growing Blindspot of The American Economy

Did You Know That …

  • The U.S. Latino market is “growing GDP at 8.6%, faster than China, faster than India.
  • All new businesses in the past 10 years were launched by Hispanics.
  • 8 out of 10 new startups were launched by Hispanics.
  • Hispanics are projected to account for 78% of net new workers between 2020 and 2030. The U.S. labor force growth rate has slowed over the past couple of decades – and what growth has occurred is largely due to the increasing number of Hispanic workers.

TEXAS

New research from New American Economy underscores the crucial role the Hispanic population plays in Texas’ labor force, population growth, and economy. The new series of factsheets, Power of the Purse: Contributions of Hispanic Americans in Texas, were prepared in partnership with the Texas Association of Business and the Texas Association of Mexican American Chambers of Commerce (TAMACC).

KEY FINDINGS

  • Hispanic Texans are contributing billions in taxes and consumer spending. In 2019, Hispanic households earned $213.7 billion in income, with $32.6 billion going to federal taxes and $18.7 billion going to state and local taxes, leaving them with $162.4 billion in spending power that can be reinvested in local communities. Robust consumer spending by Hispanic households supports small businesses and keeps local economic corridors vibrant.
  • Hispanic Texans are helping drive population growth in the state. Between 2010 and 2019, the U.S.-born Hispanic population grew by 26.7 percent, while the foreign-born Hispanic population grew by 8 percent. In 2010, 37.7 percent of the overall population in Texas were Hispanic, that number grew to 39.8 percent in 2019.
  • Hispanic Texans play a crucial role in meeting the state’s workforce needs. In 2019, 66.7 percent of the overall Hispanic population and 66.4 percent of the foreign-born Hispanic population were active in the labor force, compared with 64.1 percent of the non-Hispanic population.
  • Hispanic Texans hold substantial voting power. In 2019, there were nearly 5.7 million eligible Hispanic voters, including more than 960,000 naturalized citizens. Overall, the Hispanic population made up 31.1 percent of the electorate, including Hispanic naturalized citizens, who on their own made-up 5.2 percent.

The Economic Benefits of Undocumented Workers in Texas

Most statewide and national studies on the cost-benefit analysis of undocumented immigrants suggest Texas is profiting from “illegal immigrants”.

A recent Rice University study said the state of Texas made more than $420 million off immigrants living in the state illegally.

“Texas made more than $420 million off immigrants living in the state illegally.”

The study, which replicated an outdated state comptroller report, finds that for every $1 the Texas government spends on the estimated 1.6 million people living in the state illegally, the state brings in $1.21 in tax revenue.

The Rice study is modeled off a Texas State Comptroller report from 2006, which had similar findings: Immigrants in Texas without legal authorization generated $424.7 million more than they cost the state. The study calculated costs to the state in education and health care services, as well as incarcerations. It measures benefits through state revenues and school property taxes. Local governments, however, shouldered $929 million in uncompensated health care costs and local law enforcement costs not paid for by the state, the 2006 report found.

Source: Spectrum News, Nov.30, 2021 by Eric Griffey

TAMACC